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Conservation Easements in the U.S. and Abroad: Reflections and Views Toward the Future

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Conservation Easements in the U.S. and Abroad: Reflections and Views Toward the Future Conservation Easements in the U.S. and Abroad: Reflections and Views toward the Future Harvey M. Jacobs © 2014 Lincoln Institute of Land Policy Lincoln Institute of Land Policy Working Paper The findings and conclusions of this Working Paper reflect the views of the author(s) and have not been subject to a detailed review by the staff of the Lincoln Institute of Land Policy. Contact the Lincoln Institute with questions or requests for permission to reprint this paper. [email protected] Lincoln Institute Product Code: WP14HJ1 Abstract Public policy for privately owned land in the United States was traditionally undertaken in one of three ways: through regulation, via manipulation of the property tax, or through targeted use of public capital investments. Thirty years ago a fourth approach began to gain prominence— private, non-profit land trusts and their use of the conservation easements. In summer 2012 the Lincoln Institute sponsored a panel at an international conference on agriculture and forestry to expose U.S. practice with land trusts and conservation easements, and to ask questions about the transferability of the U.S. experience to other countries. This working paper provides an integrated summary of the presentations made at that conference and the papers subsequently prepared by the panel presenters. Cutting edge practice is profiled in the Pacific Northwest and by a TIMO (private timberland investment organization). The use of conservation easements by land trusts will continue its growth in the U.S., there is both caution and hope for the transferability of the U.S. experience. About the Author Harvey M. Jacobs is Professor, Department of Urban and Regional Planning and Nelson Institute for Environmental Studies at the University of Wisconsin–Madison, and Visiting Professor, 2012–2015, Institute for Management Research, Department of Geography, Planning and Environmental Studies, Radboud University Nijmegen, Nijmegen, The Netherlands Department of Urban and Regional Planning 925 Bascom Mall/Old Music Hall University of Wisconsin–Madison Madison, WI 53706 608-262-0552 (phone) 608-262-9307 (fax) [email protected] This working paper draws on presentations made and papers prepared by Armando Carbonell, Gene Duvernoy, Harvey M. Jacobs, and Peter Stein. The paper is the responsibility of Harvey M. Jacobs; it does not necessarily reflect consensus among Armando Carbonell, Gene Duvernoy or Peter Stein, though it often draws substantially from the analysis and the actual language of the background papers prepared by them About the Panel Presenters and Background Paper Authors Armando Carbonell is Chairman of the Department of Planning and Urban Form at the Lincoln Institute of Land Policy. Lincoln Institute of Land Policy 113 Brattle Street Cambridge, MA 02138-3400 617-661-3016 (phone) 617-661-7235 (fax) [email protected] Gene Duvernoy is President of Forterra NW. Forterra (Formerly Cascade Land Conservancy) 615 Second Avenue, Suite 600 Seattle, Washington 98104 206-905-6901 (phone) 206-292-4765 (fax) [email protected] Peter Stein is Managing Director of The Lyme Timber Company, and also serves as the 2012– 2013 Kingsbury Browne Fellow at the Lincoln Institute of Land Policy The Lyme Timber Company LP 23 South Main Street, 3rd Floor Hanover, NH 03755 603-643-3300, ext 112 (phone) 603-643-0331 (fax) [email protected] Table of Contents Introduction ..................................................................................................................................... 1 Understanding and Positioning the Conservation Easement .......................................................... 2 Property as a Bundle of Rights ................................................................................................... 2 Conservation Easements as a Right in the Bundle ...................................................................... 2 Conservation Easements as In-Gross Rights .............................................................................. 3 The Forever Nature of Conservation Easements ........................................................................ 4 The Charitable Legal Status of Conservation Easements ........................................................... 4 Public Support for Conservation Easement Programs ................................................................ 5 Case Examples of Conservation Easements in Use ........................................................................ 6 Forest Conservation Easements .................................................................................................. 6 Forest Conservation Easement in Use—Example One .............................................................. 6 Forest Conservation Easement in Use—Example Two .............................................................. 7 Farmland Conservation Easement .............................................................................................. 8 Wetland Conservation Easement—Development for Conservation ........................................... 8 Landscape Conservation Easement ............................................................................................. 8 Challenges for the Future of Conservation Easements ................................................................... 9 The Transferability of the U.S. Experience—Internationalizing Conservation Easements? ........ 10 References ..................................................................................................................................... 13 Conservation Easements in the U.S. and Abroad: Reflections and Views toward the Future Introduction In June 2012 the International Center for Research on Environmental Issues (http://www.icrei.org) sponsored their ninth international biennial conference in Aix-en- Provence, France (the initial conference was in 1996). As has been true with all prior conferences, the broad theme was “Property Rights, Economics and Environment.” The specific sub-theme of the 2012 conference was Agriculture and Forestry. Following from prior collaborations and long-standing contact among the conference organizers and staff and affiliates of the Lincoln Institute it was arranged that Lincoln would sponsor a plenary session on “Property Rights, Government Regulation and Conservation Land Trusts” (as well as sponsor a screening and discussion of the Lincoln film Portland: Quest for the Livable City). The plenary session had three goals. Goal number one was to frame the actions of conservation land trusts within a broader set of policy activities by state and local governments in the U.S. Goal number two was to bring cutting edge practitioners in conservation land trust activity in the U.S. for exposure to and discussion with an international audience. Goal number three was to reflect on the role of conservation easements and land trust activity is a broader theoretical and historical frame, and to speculate on the transferability of the U.S. experience, in particular to European countries which use civil law. Towards these goals a set of presentations and papers were commissioned. Armando Carbonell, Chairman of the Department of Planning and Urban Form at the Lincoln Institute focused his presentation on goal number one. His paper was titled “Land Use and Private Property Rights in the United States.” Peter Stein, Managing Director of The Lyme Timber Company and the 2012– 2013 Kingsbury Browne Fellow at the Lincoln Institute of Land Policy, was one of the two presentations focused on goal number two. He titled his paper “Combining Market and Non- market Mechanisms to Ensure Sustainable Management Practices on Forested Landscapes in the US.” Gene Duvernoy, President of Forterra NW, was the second of the two presentations focused on goal number two. His paper was titled “Conservation Easements: A Pacific Northwest Perspective on a Market-based Tool for Significant Landscape Conservation.” Harvey M. Jacobs, Professor of Urban and Regional Planning and Environmental Studies at the University of Wisconsin–Madison and Visiting Professor at Radboud University, Netherlands, served as the organizer and moderator of the plenary session and as the author of this working paper. His paper focused on goal number three and was titled “The Challenge of a Private Property Rights (NGO) Approach to Land Conservation.” This working paper draws upon the conference presentations and subsequent papers to make an integrated statement about the status and future of conservation easements in the U.S. and abroad. It represents an important snapshot among a leading set of practitioners and scholars about the state of easement-based conservation activity in the United States at the beginning of the 21st century. In so doing it seeks to raise a provocative set of issues for consideration by land Page 1 trust practitioners, city, regional and environmental planners, conservationists, public administrators, and citizen activists about the future of conservation easements, especially when land trusts focus upon agricultural, forested and conservation landscapes. Understanding and Positioning the Conservation Easement Property as a Bundle of Rights In the United States (and under the common law) property is conceptualized as a bundle of rights (Demetz 1967, Jacobs 1998). Drawing from the Roman concept of ownership, aspiring attorneys are taught that “cuius est solum eius est usque ad coelum et usque ad inferos”—whoever owns [the] soil [it] is theirs all the
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